Bharat Dynamics is the fourth PSU to approach Sebi for an IPO in less than one month. Photo: iStockphoto

New Delhi: Defence public sector unit (PSU) Bharat Dynamics Ltd has filed draft papers with Securities and Exchange Board of India (Sebi) to float an initial public offer (IPO).

Bharat Dynamics is the fourth public sector undertaking (PSU) in less than one month to approach Sebi for an IPO. The other three are—Mishra Dhatu Nigam Ltd, RITES Ltd and Indian Renewable Energy Development Agency (Ireda). Going by the draft papers, Bharat Dynamics’s IPO will see sale of equity shares by the government and the public issue will help the company in achieving the benefits of listing.

Bharat Dynamics was established in 1970 and is a manufacturer of guided missiles and allied defence equipment. The company’s net worth stood at Rs2,212.46 crore at the end of March 2017. SBI Capital Markets, IDBI Capital Markets and Securities Ltd and Yes Securities Ltd will manage Bharat Dynamics IPO.

Earlier in April last year, the cabinet had cleared the disinvestment of four PSUs, including Bharat Dynamics and Mishra Dhatu Nigam Ltd, under the defence ministry.